Cross-border workers spend a lot in Luxembourg, says BCL

It's a common stereotypical belief that cross-border workers hoard money earned in Luxembourg to spend in their own country, however this is simply not true, according a report publish by the Central Bank of Luxembourg on Monday.

31.03.2014

(ADW) It's a common stereotypical belief that cross-border workers hoard money earned in Luxembourg to spend in their own country, however this is simply not true, according a report publish by the Central Bank of Luxembourg (BCL) on Monday.

Cross-border workers in fact contribute significantly to domestic consumption. Overall those that commute from Germany, France and Belgium spend a whopping 925 million euros in Luxembourg per year, which boils down to a budget of about 9,300 euros per person.

Unsurprisingly, a high proportion of expenditure per year went on fuel, about 21 percent with an average cost of 1,100 euros per household. Products such as alcohol and tobacco also feature highly but even food is bought in Luxembourg by cross-border workers.

The report shows that Belgians buy the most food while Germans spend the most on fuel.

It is quite common for Belgians to buy furniture and electronic goods in Luxembourg but not for Germans, who rarely purchase products of this nature in the Grand Duchy. Even buying alcohol is relatively low on a German-commuter's Luxembourg shopping list.

The final results show the Belgians are the biggest spenders in Luxembourg at 10,000 per year per person, followed by the French at 9,600 euros. However, Germans seem to prefer to shop in their own country spending only around 7,600 euros per year in the Grand Duchy.

The report was produced by CEPS/Instead on behalf of BCL based on interviews with cross-border workers in 2010. From April, a new survey will be carried out with new data.